The Average Risk Premium on U

question 70

Multiple Choice

The average risk premium on U.S.Treasury bills over the period of 1926 to 2012 was _____%.

• A)0.0
• B)1.6
• C)2.2
• D)3.1
• E)3.8

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Definitions:

Induction

Reasoning from observations to a theory that might explain the observations.

Empiricism

The view that knowledge should be based on experience and observation, on empirical as opposed to theoretical knowledge.

Positivism

A philosophical theory that asserts that genuine knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Rationalism

A philosophy that emphasizes reason and knowledge acquisition through deductive reasoning and logical analysis, rather than empirical evidence.